How to Increase Retention with Great Employee Benefits
While there are many ways to encourage your valuable employees to stick around, offering them group benefits such as medical insurance is the best way to do so. Other coverage, including vision, dental, life, and disability, can give you an edge over the competition by taking your retention to the next level.
Unfortunately, many entrepreneurs rarely understand how offering employee benefits also helps the company. Keep reading to discover how great benefits are the key to retaining your most successful team members!
Understanding Why Employee Retention Is So Important
Most of our guide will cover various group insurance benefits and how they can help you keep workers. Before that, you need to understand why retaining workers is so important: Retention helps to save money, boost productivity, improve morale, and develop employee skills.
Let’s take a closer look at how simply offering a group insurance package can be such a game-changer for your company.
As you might imagine, the primary reason employers hesitate to offer a group package is because they worry about the added costs. However, the surprising truth is that providing things like life insurance can save your business money by reducing the costs associated with turnover and hiring new workers. You’ll also cut down on the costs of training new staff, and you can reinvest those resources into the business.
Once you become the big boss, you realize that “human resources” is quite accurate. You spend your time and energy trying to improve worker productivity as much as possible. Offering a benefits package helps boost productivity because the workers who stick around longer will become more comfortable with their job, colleagues, and clients — which makes them infinitely more productive than new workers who keep coming in through a revolving door and burning out in less than a year.
Better Morale and Better Employees
One of the best benefits of keeping employees is improving worker morale. Sometimes, this results from workers responding to the insurance and seeing how much you care about their well-being. Other times, it’s about those who stick around to get to know each other and develop better team cohesion. As a bonus, workers sticking around for longer develop more skills, which helps your company grow.
We’ve looked at why you need to focus on worker retention, so let’s now see how offering great employee benefits is the best way to retain your best staff.
Benefits: The Easiest Way to Show Employees You Care
Think about the psychology of the average worker and how offering an insurance package may affect them. What makes the difference in whether someone sticks around or starts updating their LinkedIn? Usually, it all comes down to whether the worker thinks their boss cares about them.
There are many ways to show you care, including some you always have control of (such as throwing office parties) and some you don’t always have control of (such as offering regular raises). But by providing things like health insurance, you show your team you care about them in a powerful and tangible way, which causes them to stick around much longer than they otherwise would.
The COVID-19 Pandemic Changed Worker Expectations About Benefits
While health and dental insurance have always been important to workers, they have become that much more important after the COVID-19 pandemic. That is because the pandemic has changed (perhaps permanently) employee expectations concerning their health.
The pandemic has made countless people reevaluate how they care for their bodies. By now, almost everyone knows at least one person who has died of COVID, and the average worker has become much more concerned about caring for themselves as they grow older. Offering insurance shows you are just as committed to your employees’ health as they are, helping you keep them for much longer.
Less Turnover with Benefits
It’s an open secret that offering benefits helps prevent turnover, but you might be surprised by how dramatic the difference can be. For example, 66% of employees examine the benefits provided by their businesses before deciding whether they will stay or start applying to other places.
Make no mistake: Turnover is one of your business’ most significant obstacles. Turnover accounts for a staggering one trillion dollars in costs for American companies annually. By fighting turnover with substantial benefits, you get a stronger workforce at a lower price, and that’s a real “win/win” in any book.
Benefits Packages Boost Retention While Helping You Beat the Competition
Your workers stand to gain a great deal when you offer generous insurance packages. However, it’s fair for an entrepreneur to ask, “What’s in this for me?” While we have covered many upsides to offering things like dental and disability insurance, here’s one you might not have realized: Offering benefits is your secret weapon against your competitors.
Workers are resigning from their jobs at record rates. Those who stick around do so mostly because they believe their employer cares about them. Those applying to other places may focus on companies that offer benefits their previous job did not. By providing a solid benefits package, you retain employees who appreciate what you do for them.
In this way, you get the edge over the competition even as you give your workers the insurance they deserve.
Get the Best Employee Benefits Today!
Now you know how and why an incredible benefits package helps improve retention. But do you know where you can find the coverage your team deserves at the best possible price?